HomeMy WebLinkAboutReso 1998-19170 RESOLUTION NO. 19170
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA REGARDING ITS INTENTION TO ISSUE TAX EXEMPT
OBLIGATIONS TO FINANCE THE CITY'S CORPORATION YARD
AND DIRECTING STAFF TO RETURN WITH A FINANCING PLAN
WHEREAS, the City Council of the City of Chula (the "lssuer") desires to finance the
costs of acquiring certain public facilities and improvements, as provided in Exhibit A attached
hereto and incorporated herein (the "Project"); and
WHEREAS, the Issuer intends to finance the acquisition of the Project or portions of
the Project with the proceeds of the sale of obligations the interest upon which is excluded
from gross income for federal income tax purposes (the "Obligations"); and
WHEREAS, prior to the issuance of the Obligations the Issuer desires to incur certain
expenditures with respect to the Project from available monies of the Issuer which
expenditures are desired to be reimbursed by the Issuer from a portion of the proceeds of the
sale of the Obligations.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES
HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:
SECTION 1. The Issuer hereby states its intention and reasonably expects to
reimburse Project costs incurred prior to the issuance of the Obligations with proceeds of the
Obligations. Exhibit A describes either the general character, type, purpose, and function of
the Project, or the fund or account from which Project costs are to be paid and the general
functional purpose of the fund or account.
SECTION 2. The reasonably expected maximum principal amount of the Obligations
is 911,200,000. The total Project cost is estimated to be approximately 923 million, including
approximately 96.9 million in financing costs (interest and fees).
SECTION 3. This resolution is being adopted on or prior to the date (the "Expenditures
Date or Dates") that the Issuer will expend monies for the portion of the Project costs to be
reimbursed from proceeds of the Obligations.
SECTION 4. Except as described below, the expected date of issue of the Obligations
will be within eighteen months of the later of the Expenditure Date or Dates and the date the
Project is placed in service; provided, the reimbursement may not be made more than three
years after the original expenditure is paid. For Obligations subject to the small issuer
exception of Section 148(f)(4)(D) of the Internal Revenue Code, the "eighteen-month limit"
of the previous sentence is changed to "three years" and the limitation of the previous
sentence beginning with "provided ..... "is not applicable.
SECTION 5. Proceeds of the Obligations to be used to reimburse for Project costs are
not expected to be used, within one year of reimbursement, directly or indirectly to pay debt
service with respect to any obligation (other than to pay current debt service coming due
within the next succeeding one-year period on any tax-exempt obligation of the Issuer [other
than the Obligations]) or to be held as a reasonably required reserve or replacement fund with
Resolution 19170
Page 2
respect to an obligation of the Issuer or any entity related in any manner to the Issuer, or to
reimburse any expenditure that was originally paid with the proceeds of any obligation, or to
replace funds that are or will be used in such manner.
SECTION 6. This resolution is consistent with the budgetary and financial
circumstances of the Issuer, as of the date hereof. No monies from sources other than the
obligation issue are, or are reasonably expected to be reserved, or otherwise set aside by the
Issuer (or any related party) pursuant to their budget or financial policies with respect to the
Project costs on a long-term basis. To the best of our knowledge, this City Council is not
aware of the previous adoption of official intents by the Issuer that have been made as a
matter of course for the purpose of reimbursing expenditures and for which tax-exempt
obligations have not been issued.
SECTION 7. The limitations described in Section 3 and Section 4 do not apply to (a)
costs of issuance of the Obligations, (b) an amount not in excess of the lesser of 8100,O00
or five percent (5%) of the proceeds of the Obligations, or (c) any preliminary expenditures,
such as architectural, engineering, surveying, soil testing, and similar costs other than land
acquisition, site preparation, and similar costs incident to commencement of construction, not
in excess of twenty percent (20%) of the aggregate issue price of the Obligations that
finances the Project for which the preliminary expenditures were incurred.
SECTION 8. This resolution is adopted as official action of the Issuer in order to
comply with Treasury Regulations § 1.150-2 and any other regulations of the Internal Revenue
Service relating to the qualification for reimbursement of Issuer expenditures incurred prior to
the date of issue of the Obligations, is part of the Issuer's official proceedings, and will be
available for inspection by the general public at the main administrative office of the Issuer.
SECTION 9. Staff is further directed to return with a detailed financing plan with
respect to the Obligations and the Project.
SECTION 10. All the recitals in this Resolution are true and correct and this City
Council so finds, determines and represents.
Presented by Approved as to form by
Sid/~-*' /~ J /M. KahneyC~& ~
Assistant City M ey
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Page 3
EXHIBIT A
Description of Project
The proposed Corporation Yard project is necessary to provide current and future
administrative office space, equipment and materials storage, public facility maintenance
facilities, vehicle storage and maintenance facilities, public transit support facilities and related
facilities to serve the Chula Vista community. The current facility on 707 F Street has been
determined to be inadequate.
The proposed project site, with an estimated acquisition cost of $7,000,000, consists
of approximately 25 acres of improved property located at 1800 Maxwell Road in the City of
Chula Vista. Existing improvements include a 31,037 square foot office building, a 14,188
square foot warehouse, an 8,649 square foot service facility garage and a parking lot and
related facilities.
Significant renovations and improvements will be required to complete the project.
Final facility design and corresponding construction costs have not been determined. The
facility is expected to be planned for the Chula Vista population at "build-out" which is
estimated to be 277,000 by the year 2030.
The maximum estimated total cost of such facility is expected not-to-exceed $23
million. Approximately $6.9 million of that is expected to be~financing costs. Approximately
$4.9 million shall be funded out of capital existing in the City's Transit Fund account.
Approximately $11.2 million of that amount is estimated to be the maximum amount to be
financed with tax exempt debt.
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PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 15'h day of September, 1998, by the following vote:
AYES: Councilmembers: Moot, Padilia, Rindone, Salas and Horton
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
Shirley H~t~n, Mayor
ATTEST:
~uth~let, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Beverly A. Authelet, City Clerk of Chula Vista, California, do hereby certify that the
foregoing Resolution No. 19170 was duly passed, approved, and adopted by the City Council
at a regular meeting of the Chula Vista City Council held on the 15'h day of September, 1998,
Executed this 15th day of September, 1998.
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